This month: • MTN Uganda increased Mobile Money withdrawal fees • Airtel launched a Virtual SIM platform • Orange not selling its Egyptian operation • Tigo partnered with WorldRemit

The rest of the report: • Competitor updates Key African • Vodacom OPCO operator updates − Estimated subscriber numbers and market share Competitors and − Market updates • Products and Services (Enterprise and Consumer) Country Updates • Economic and ICT indicators • Competitors’ footprint in Africa • Active operators in Africa For the period June’14 to July’14

Prepared by Strategy and Research For any questions contact Min Hua or Tersia Esbach Things to note this month…

OPCOs • Airtel and the Tanzanian Government failed to agree on the • Mcel reduced the price of its Netmovel Turbo 100 pre-paid and sale of 35% TTCL shares owned by Airtel post-paid package. FNB (SA bank) launched a cross-border money transfer service between South Africa and Mozambique

Competitors • MTN Uganda increase Mobile Money withdrawal fees • Orange is not selling its Egyptian operation • Airtel launched a Virtual SIM platform • Tigo partnered with WorldRemit to extend Mobile Money services Nigeria • Nigeria is targeting 30% broadband penetration by 2017 • Opened bid for the licensing of infrastructure companies to • Mobile money payments hit NGN271bn with 25m deploy metropolitan optic fibre infrastructure and associated transactions at the end of May, encompassing about 65,000 equipment in Lagos and the North Central Zone. The bid closes mobile money agents in the country on the 4th of August Fines, • Uganda levied a 10% Excise tax on Mobile Money • Nigeria’s regulator may sanction MTN for failing to abide by its Levies, withdrawals earlier directives concerning its dominance in the voice Sanctions • Côte d'Ivoire’s regulator has fined the country’s six operators segment, which includes: not to offer differential pricing on its XOF2.92bn (USD6m) in total for not meeting service quality on-net and off-net mobile voice services, and to stop running obligations. MTN was fined XOF1.34bn (USD2.78m), Moov promos on its network until QoS is improved XOF 800.72m (USD1.66m), Orange XOF 46.29m • Orange lodged an appeal with Mali’s Supreme Court to (USD0.1m), Comium XOF5.49m (USD11,373), GreenN overturn a XAF6.86bn (USD14.23m) fine levied by the regulator XOF4.85m (USD10,047) and Café Mobile XOF4.85m accusing them of illegal use of mobile bandwidth for a fixed line (USD10,047) service Report • According to the June 2014 Sub-Saharan Africa (SSA) Ericsson Mobility Report, mobile internet data has doubled in the past year in SSA. Current usage is 76,000TB of data per month, compared to 37,500TB per month for 2013, and is estimated to hit 147,000TB per month in 2015. The rise is prompted by increased social media, content-rich apps and video contents. For the full report please go to the Vodacom Library or visit Ericsson.com

Vodacom Strategy and Research C2 - Confidential July 2014 2 MTN increased Mobile Money withdrawal fees in Uganda…

General • Partnered with the Wikipedia Foundation to introduce free • Launched ‘Prestige Club' for high value customers in Liberia access to Wikipedia to Rwandan subscribers • Has been rated 276th among the top 500 global companies on • Is looking for digital content partners for its 'MTN Play' web corporate sustainability and environmental impact in the 2014 portal in Ivory Coast. MTN is offering rights owners between Newsweek Green Rankings. Vodafone group is ranked 152nd 30 and 60% revenue share depending on the quality of their • MTN was the only African brand to make the 2014 BrandZ Top content and the traffic they generate 100 Most Valuable Global Brand ranking (93rd) • Launched the ‘MTN Kalast’ prepaid promotion in South • Launched the ‘21 days of Y'ello Care’ employee volunteer Sudan. It offers 7 days free on-net calls for a registration fee initiative programme of SDG10 (USD0.17), and can be renewed after 7 days • MTN Guinea employees went on strike over job cuts and low • Launched Mobile Money Visa card in South Africa pay. The situation was resolved 4 days later Nigeria • The regulator may sanction MTN for failing to abide by its • A judge ruled against MTN Nigeria for terminating a contract earlier directives concerning its dominance in the voice with Tatacoms Integrated Resources Limited and NGN20,000 segment, which includes: not to offer differential pricing on was awarded to the plaintiff its on-net and off-net mobile voice services, and to stop • MTN Y’ello Care renovated six blocks of classrooms at Basiru running promos on its network until QoS is improved Dania Primary school, as its contribution to improve education • The current Chief Marketing Officer of MTN Nigeria will be in Lagos State moved to South Africa to assume a similar role Ghana • Announced that more than 5m subscribers use its Mobile • Introduced ‘Roam like Home’, a new roaming tariff that allows Money services per month, with over 2m registered MTN subscribers to pay local rates for Voice, Data and SMS, while users in any MTN operated countries Uganda • Increased Mobile Money withdrawal fees in Uganda effective • Launched ‘MTN mFaith’, a message service that will enable from 1 August, due to a 10% Excise tax levied by customers to get inspirational messages like verses from the government on Mobile Money withdrawals Bible or the Quran. The service costs UGX100 (USD0.04) per • Is suing Threeways Shipping Service, claiming the company day or UGX500 (USD0.2) per week has defrauded MTN of USD4m between 2009 and 2012

Vodacom Strategy and Research C2 - Confidential July 2014 3 Airtel launched a Virtual SIM platform…

General • Signed a deal with neXva Inc. (global provider of white label • Airtel and the Tanzanian Government failed to agree on the sale of app stores), to launch Airtel-branded mobile app stores in 35% TTCL shares owned by Airtel. The operator has rejected the Africa TZS5bn (USD2.94m) government offer, despite the shares being • Entered into a group-wide framework agreement with valued at TZS3.8bn (USD2.23m), and is asking for TZS21.5bn Movirtu to launch a Virtual SIM platform. The platform (USD12.63m) enables users to temporarily activate their number on a • Launched a health insurance service ‘Airtel Mobil'Assur’ in Burkina shared handset. Already launched in Madagascar and DRC Faso, for XAF300 (USD0.62) per month • Launched iPhone 5 in Tanzania and Ghana • Airtel Zambia experienced a system error which saw about 28,000 • Airtel Congo partnered with vehicle tracking company customers lose their airtime, worth about ZMW900,000 Tramigo to offer the Tramigo real-time vehicle fleet location (USD145,818). Airtel has refunded affected subscribers and given service to customers them 30min on-net calls as added compensation Nigeria • Partnered with Apple to unveil iPhone 5s in Nigeria. Airtel is • Launched a discounted roaming package for Nigerians in Brazil offering iPhone users zero interest financing and 500MB during the World Cup. Subscribers could make, and receive calls, data per month for 24 months to Brazilian and Nigerian networks from NGN60, with a discounted • Received the Best Corporate Website award at the Web SMS rate of NGN50, and data rates of NGN1/10kb Jurist Awards Kenya • Launched a new offer that awards 25% bonus airtime to • Announced its support for Immanuel Afrika’s (I-Afrika) biogas prepaid customers when purchasing KES50 (or above) project, which promotes clean and cheaper energy sources worth of airtime using Mobile Money. The bonus is valid for 30 days and can be used on all services

Vodacom Strategy and Research C2 - Confidential July 2014 4 Orange not selling its Egyptian operation…

General • Orange launched the first e-care app in Kenya, dubbed • Denied reports that it plans to divest its stake in Mobinil - its ‘myOrange’ Egyptian operator • Senegal's competing petrol station operators have called • Lodged an appeal with Mali’s Supreme Court to overturn a for the State to invalidate an exclusive contract between XAF6.86bn (USD14.23m) fine levied by the regulator for the illegal Orange and Total, due to an unfair advantage. Currently use of mobile bandwidth for a fixed line service. The regulator Orange is steering customers to Total, offering XOF accused Orange Mali of breaking local telecoms rules by using a 5,000 (USD10.36) of free call credit on Orange Senegal mobile phone platform for its ‘Douba’ branded fixed line service. The when subscribers buy XOF 50,000 (USD103.58) of fuel fine has subsequently been increased to XAF11.4bn (USD23.61m) after Orange Mali refused to pay

Côte d’Ivoire • Orange and the BNP Paribas Group partnered to offer • Started LTE testing in Abidjan. Subscribers with an LTE compatible retail banking customers direct access between their BNP mobile phone or tablet can test the technology for free. However, the Paribas and Orange Money accounts regulator has ordered Orange to pull 4G test ads, as the operator does not have a 4G licence. ISP YooMee is the only operator licensed for 4G commercial services

Vodacom Strategy and Research C2 - Confidential July 2014 5 Tigo/Millicom partnered with WorldRemit to extend Mobile Money services…

General • Real Estate portal, Lamudi, launched the first Android app for • Lamudi is a product of Africa Internet Holding (AIH), house-hunters in the world. The App will host more than developed through the partnership of Millicom, MTN and 400,000 property listings from Africa, Asia, the Middle East Rocket Internet (each owning a third of the business) and Latin America, giving international clients a free mobile platform to buy, rent or sell real estate on the go

Tanzania • WorldRemit has partnered with Tigo Tanzania to allow their • Partnered with Dar Teknohama Business Incubator (DTBi) clients to send money to friends and family living in Tanzania in Tanzania to support a programme aimed at promoting via Tigo Pesa local talent and employment in the country through ICT

Ghana • Tigo Ghana signed a USD2m agreement with the • Announced an investment programme to improve its International Finance Corporation (IFC) and the MasterCard network and services. Tigo plans to invest USD100,000 a Foundation to expand mobile financial services in the country day in upgrades until the end of October, with initial emphases on fibre infrastructure

Rwanda • Millicom has acquired a controlling stake in Rwanda’s main • Signed a four-year agreement with One UN Rwanda, provider of bank-to-bank payment switching services, aimed at promoting youth and women employment Rswitch – the company holds one of two switching licences through ICT in the country

Vodacom Strategy and Research C2 - Confidential July 2014 6 Operators update: Tanzania and DRC…

Tanzania subscriber numbers and market share DRC subscriber numbers and market share *Vodacom internal reported that subscriber numbers for Jun’14 was 10,638 *Vodacom internal reported that subscriber numbers for Jun’14 was 10,502

Vodacom Tanzania Airtel Tanzania Tigo Tanzania y-o-y % Airtel DRC Vodacom Congo y-o-y % (1) Zanzibar Telecom Other operators change(1) Oasis Telecom Orange DRC change Africell DRC Standard Telecom DRC 10 471 8.33% 10 548 29.76% 9 785 9 357 18.74% 9 319 9.39% 8 349 8 604 8 089 6 409 1.23% 6 294 5 075 239.01% 4 282 44.46% 3 187 2 000 1 990 13.24% 1 922 1 630 -17.98% 1 813 22 26.15% 57 59 4.60% 17

Market update Market update

• SEACOM partnered with CDNetworks to enhance Pan-African IP network • CPI increased marginally, from 1.24% y-o-y during March to 1.25% y-o-y in footprint in Tanzania April. Annual average inflation declined significantly during 2013 to 1.92%, • Telecom Italia Group partnered with TTCL for the delivery of IP services in compared to an average of 9.22% in 2012 South and East Africa, through a new point of presence in Dar es Salaam • Despite decline in CPI, the y-o-y rate reached its highest level since August last year at 6.5% y-o-y, due to base effects

(1) y-o-y % change – Calculated using WCIS Informa subscriber numbers Source: Informa WCIS 2014 estimated figures for subscriber numbers and market share

Vodacom Strategy and Research C2 - Confidential July 2014 7 Operators update: Mozambique and Lesotho…

Mozambique subscriber numbers and market share Lesotho subscriber numbers and market share * Vodacom internal reported that subscriber numbers for Jun’14 was 4,604 * Vodacom internal reported that subscriber numbers for Jun’14 was 1,342

Mocambique Celular Movitel Mozambique y-o-y % y-o-y % (1) Econet Telecom Lesotho Vodacom Lesotho change change(1) Vodacom Mozambique 4 633 39.97% 1 399 21.24% 4 489 4 512 1.16% 3 687 1 160 3 436 79.83%

2 193 488 42.36% 356

Market update Market update

• Mcel reduced the price of its Netmovel Turbo 100 pre-paid package to • CPI increased by its largest y-o-y margin since November 2011, with 6.7% MZN500 (was MZN600), and its post-paid packages – Turbo 500 to MZN250 y-o-y recorded in May, compared to a reading of 5.9% y-o-y seen during (was MZN450) and Turbo 1000 to MZN500 (was MZN750) April • FNB (SA bank) launched a cross-border money transfer service between South Africa and Mozambique • Mozambique is looking to establish a multilateral partnership that will contribute to the development and implementation of targeted government policy for internet access at affordable prices • CPI at 2.91% y-o-y in May, compared to 2.87% y-o-y in April

(1) y-o-y % change – Calculated using WCIS Informa subscriber numbers Source: Informa WCIS 2014 estimated figures for subscriber numbers and market share

Vodacom Strategy and Research C2 - Confidential July 2014 8 MTN: Financial update 1QFY14 (updated Apr’14)(1) Airtel: Financial update 4QFY13/14 (updated Apr’14)(2)

150 250 5000 80

4000 200 60 100 150 3000 40 100 2000 50 20 50 1000

0 0 0 0 FY 09 FY 10 FY 11 FY12 FY13 Q1 FY14 FY 11 FY 12 FY 13 Q1 FY 14 Q2 FY 14 Q3 FY 14 Q4 FY 14 MTN Total Revenue (ZARbn) MTN EBITDA (ZARbn) Airtel Africa Revenue (USDm) Airtel Africa EBITDA (USDm) MTN Total Subscribers (m) Airtel Africa Subscribers (m) Group(1) Group(1) • Recorded 210.1m subscribers, a 1.1% q-o-q growth, impacted by the ban on SIM card • Total customer base 285.95m sales in Nigeria during March, the disconnection of non-revenue generating subscribers • Total revenue USD3,6bn in South Africa and slower subscriber growth in Iran • EBITDA up to USD1,184m, with an EBITDA margin of 32.9% • Group data revenue increased by 43.3% y-o-y, contributing 17.0% to total revenue • Capex of USD539m • Total registered Mobile Money subscribers at 16.6m, a 12.0% increase Africa Nigeria • Africa revenue up 2% y-o-y to USD1,145m • Subscribers grew marginally (0.8% q-o-q) to 57.2m, despite the SIM sale ban • Non-voice revenue accounts for 19.6% of mobile revenue • Market share down marginally to 49.3% • Data is 7.4% of mobile revenue • Data revenue increased by 21.1% y-o-y, with avg. data usage per customer at • Messaging and VAS are 9.3% of mobile revenue 41MB/month. Increase was due to growth in 3G devices, which increased to 7.1m • Total revenues 4QFY14 were impacted by reduction in MTRs in a few • ARPU decreased to 3,2% due to lower effective tariffs countries • The operator added 483 2G sites and 597 3G sites • EBITDA grew 2% to USD290m - a 25.3% margin Ghana • Capex down 25% y-o-y to USD176m • Subscribers up 1.0% q-o-q to 13.1m • ARPU down 7% y-o-y to USD5.5 • Data revenue increased 99.8% y-o-y, contributing 7.0% to total revenue. Growth was • Customer base up 9% y-o-y to 69.443m due to Mobile Money drive • Prepaid is 99.3% of total customer base • ARPU increased 1,7% for the quarter • Data is 32.1% of total customer base - a 53% y-o-y increase Uganda • Airtel Money customers increased 28.2% q-o-q to 3.5m, with transaction • Subscribers up 8.4% q-o-q to 9.5m value up 28.6% q-o-q to USD2.2m • Data revenue increased 67.7% y-o-y, contributing 23,5% to total revenue. Mobile • At the end of the quarter Airtel had 17,792 sites (6,923 3G sites) Money is now the largest contributor to data revenue with nearly 50% of subscribers actively utilising the service (1) MTN quarterly report 2014 • ARPU declined 13,5% for the quarter due to lower effective tariffs (2) Airtel quarterly report 2014

Vodacom Strategy and Research C2 - Confidential July 2014 9 Orange: Financial update 1QFY14 (updated Apr’14)(1) Tigo/Millicom: Financial update 1QFY14 (updated Apr’14) (3)

300 56 000 1200 25 48 000 250 1000 20 40 000 200 800 32 000 15 150 600 24 000 10 100 400 16 000 5 50 8 000 200 0 0 0 0 FY09 FY10 FY11 FY12 FY13 Q1 FY14 FY09 FY10 FY11 FY12 FY13 Q1 FY14

Total Africa subscribers (m) Rest of Orange group (m) Tigo Africa Revenue (USDm) Tigo Africa EBITDA Group revenue (Euro m) Tigo Africa Subscribers Group(1) Group(1) • Revenue at EUR9.8bn(2), a 3.8% y-o-y decline:- • Group revenue of USD1,405m, a reported y-o-y growth of 4% (8.5% local currency growth). Mobile − Excluding regulations, revenue declined by 3.0% y-o-y accounted for 77% of revenue, Cable & Digital Media 15% and Mobile Financial Services 8% • Revenue growth in emerging markets offsetting difficulties in Europe • Group EBITDA reported at USD478m with a margin of 34.0% • EBITDA at EUR3.0bn, 3.8% y-o-y decline, margin at 30.8% • Increased mobile customer base by 1.6m subscribers • Capex at EUR1.2bn, 1.6% y-o-y decrease, 11.8% of revenue • Capex of USD163m (11.6% of revenue) • Group subscribers at 239.4m, a 4.2% y-o-y increase Africa: • Revenue up 7.2% y-o-y to USD244m. EBITDA at USD56m, a 21% y-o-y decline Africa & Middle East • Total Mobile ARPU at USD3.5, a 10.0% decline • Mobile customer base increased by 11.4% y-o-y to 91.3m • Capex of USD38m, 15.4% of revenue • Revenue at EUR1.0bn, increased by 5.7% y-o-y:- • Total mobile customers of 21.8m, a 19.5% y-o-y increase – Africa and Middle-East growth driven by Mali, Guinea, Ivory Coast and • Growth in net additions was stronger than the previous quarter, led by Senegal, Chad, & Tanzania Egypt • Mobile Financial Services (MFS):- • Orange Money at 9.9m customers, a 48% y-o-y growth – MFS penetration reached 54.5% of Tigo, Tanzania’s total mobile customer base – Rwanda’s penetration is at 38.0%

(1) France Telecom Orange’s quarterly results press release 2014 – Chad crossed the 10% penetration mark in the quarter (2) 1 USD = 0.72631 EUR • e-Commerce/Online:- – Jumia showed double digit growth during the quarter and more than doubled its revenue – Easy Taxi (mobile taxi booking service) launched in Ghana. Hellofood (online food ordering service) launched in Tanzania, Uganda and Algeria. Kaymu (e-Commerce) expanded into Senegal, Uganda, Ivory Coast, Ethiopia and Zambia. Lamudi (real estate classifieds) expanded into Ethiopia, Zambia, Zimbabwe, Mozambique, Madagascar and Ivory Coast. Carmudi (car classifieds) expanded into Ghana and Cameroon

(3) Millicom/Tigo quarterly report 2014 Vodacom Strategy and Research C2 - Confidential July 2014 10 Enterprise products and services launched Jun’14 to Jul’14

Enterprise Mobile Enterprise Cloud App Other solution Money

PayPal launched ‘PassPort’ a free site that provides information and tools to small businesses on country-specific customs, trends and shipping logistics, in an effort to Africa PayPal help businesses generate sales in those countries

East Africa Oracle has unveiled Oracle Database In-Memory, which will enable organizations to discover business insights in real-time Oracle

TI Sparkle, TI Sparkle, the International Services arm of Telecom Italia Group, and Dolphin Telecom have announced a new partnership for the provision and the development of IP West Africa Dolphin connectivity services in West Africa Telecom

SEACOM, Tanzania SEACOM partnered with CDNetworks to enhance pan-African IP network footprint in Tanzania CDNetworks

Angola Unitel selected network solutions provider Mycom for an end-to-end mobile network and service performance management solution Unitel

Sage Sage Pastel has launched a mobile phone-based accounting system that monitors financial performance of a company in real time Pastel Kenya IKAZZ an Indian based technology firm expands to Kenya with its Near Field Communication (NFC) and Bluetooth-powered cloud-based payments platform IKAZZ

Seagate Technologies Limited partnered with Coscharis Technologies on IT solution Seagate

Nomanini, Nigeria Nomanini (Cape Town-based technology solution) partnered with Nigerian enterprise Aurora VM to expand into West Africa Aurora VM

Checkpoint unveiled software-defined protection security solutions Checkpoint

Zimbabwe Telecel launched an API for developers and merchants to integrate their services with Telecash Telecel

Congo Airtel Congo partnered with vehicle tracking company Tramigo to offer the Tramigo real-time vehicle fleet location service to customers Airtel

Vodacom Strategy and Research C2 - Confidential July 2014 11 Enterprise & consumer products and services launched Jun’14 to Jul’14

e- Mobile Enterprise and Consumer Tariff LTE Commerce/ VAS App Other Money e-Payment Airtel signed a deal with neXva, Inc. (global provider of white label app stores), to launch Airtel-branded mobile app stores in Africa Airtel Airtel Entered into a group-wide framework agreement with Movirtu to launch a Virtual SIM platform. The platform enables users to temporarily activate their Airtel Multiple number on a shared handset. The service has launched in Madagascar and DRC Real Estate portal Lamudi launched the first Android app for house-hunters in the world. The App will hosts more than 400,000 property listings from Africa, Lamudi Asia, the Middle East and Latin America, giving international clients a free mobile platform to buy, rent or sell real estate on the go Guaranty Guaranty Trust Bank launched a service that allows subscriber from MTN, Etisalat and Airtel to top up via its bank accounts Trust Bank East Africa Microsoft launched an online portal dubbed 'Tuko Works', which will provided free content on career guidance, access to online courses and Microsoft entrepreneurship skills Ghana, GeoPoll, the world's largest real-time mobile survey platform launched ts Audience Measurement Service, which offers the first ever daily TV ratings in Kenya, GeoPoll several African markets Tanzania Telecom Italia Group partnered with TTCL for the delivery of IP services in South and East Africa through a new point of presence in Dar es Salam TTCL Tanzania WorldRemit has partnered with Tigo Tanzania to allow their clients to send money to friends and family living in Tanzania via its Tigo Pesa Tigo Mcel reduced the price of its Netmovel Turbo 100 pre-paid package to MZN500 (was MZN600) and the post-paid packages of Netmovel Turbo 500 to Mcel Mozambique MZN250 (was MZN450) and Turbo 1000 to MZN500 (was MZN750) FNB (SA bank) launched a cross border money transfer service between South Africa and Mozambique FNB Angola Multitel selected Israel’s Telrad Networks todeploy TD-LTE technology Multitel MTN introduced ‘Roam like Home’, a new roaming tariff that allows subscribers to pay local rates for Voice, Data and SMS, while in any MTN operated MTN countries Ghana Tigo Ghana signed a USD2m agreement with the International Finance Corporation (IFC) and the MasterCard Foundation to expand mobile financial Tigo services in the country Surfline Communications launched 4G LTE technology in Ghana Surfline Asus launched the Asus Transformer T100, which they classifieds as a mobile laptop in Kenay for KES49,000 (USD550) Asus Kenya Fountain Enterprise Programme and MobiKash launched the Lipa Sasa Na MobiKash merchant payment service. MobiKash Digital Nigeria Digital Jewels Limited unveiled the Cyber Threat Barometer Jewels MTN increased Mobile Money withdrawal fees in Uganda effective from 1 August, due to a 10% Excise tax levied by government on Mobile Money Uganda MTN MTN withdrawals EcoCash teamed up with WorldRemit to offer instant international money transfers to EcoCash mobile wallets EcoCash

Zimbabwe TelOne, Eagle Insurance, First Mutual Life, Old Mutual, Zimnat and Nyaradzo signed an agreement for the payment of fees through Telecel Telecel TelOne and the City of Bulawyao signed agreements with Telecel for the payment of telephone bills and municipal bills with telecash Telecel

Cote d’Ivoire Orange and the BNP Paribas Group partnered to offer retail banking customers direct access between their BNP Paribas and Orange Money accounts Orange

Vodacom Strategy and Research C2 - Confidential July 2014 12 Consumer products and services launched Jun’14 to Jul’14

Mobile e- Tariff/ Consumer Promotions VAS App Device Other Money Learning Packages Tanzania, Airtel launched iPhone 5 in Tanzania and Ghana Airtel Ghana Tecno launched the R7, a 1.5 GH¢ 6 Core Processor handheld device Techno Ghana RLG introduced the G52 Sports Limited Edition, the latest ‘TV phone’ for football fans RLG Airtel launched a new offer that awards 25% bonus airtime to prepaid customers when purchasing KES50 or above worth of airtime using Airtel Airtel Mobile Money. The bonus is valid for 30 days and can be used on all services Orange launched the first e-care app in Kenya dubbed ‘myOrange’ Orange Kenya XTouch X3 Hexa-Core smartphone was launched in Kenya XTOUCH StarTimes reduced its decoder prices StarTimes Microsoft, Microsoft launched the Nokia XL in Kenya for KES15,500 Nokia Airtel partnered with Apple to unveil iPhone 5s in Nigeria. Airtel is offering iPhone users zero interest financing and 500MB data per month for Airtel 24 months Airtel launched a discounted roaming package for Nigerians in Brazil during the World Cup. Subscribers can make and receive calls to Airtel Airtel Brazilian and Nigerian networks from NGN60, send SMS at NGN50 and NGN1/10kb of data Microsoft, Microsoft Devices has introduced the first smart dual SIM Windows smartphone, Lumia 630 into the Nigerian market Nigeria Nokia Globacom partnered with Samsung on Galaxy S5 Globacom Samsung launched premium warranty for Galaxy S5 users with the Galaxy Gifts package Samsung Samsung launched Dr. Samsung, a campaign that offer free service on all products, both under warranty and out of warranty items Samsung Samsung Etisalat launched ‘Cliqlite’ devices, an educational product designed for children between the ages of nine to 15 years with pre-installed Etisalat Etisalat educational content MTN launched the ‘MTN mFaith’, a message service that will enable customers to get inspirational messages like verses from the Bible or the MTN Quran. The service costs UGX100 (USD0.04) per day or UGX500 (USD0.2) per week Uganda Uganda Uganda Uganda Telecoms introduced Do Not Disturb (DND), an option of opting out on receiving subscriber SMS alerts Telecoms Telecoms Econet cut its international tariff rates by up to 25% for countries in the region and also to ZAR0.20 (USD0.02) per minute for calls to the UK, Zimbabwe Econet Econet the US, China and Canada Burkina Airtel launched a health insurance service ‘Airtel Mobil'Assur’, in Burkina Faso, for XAF300 (USD0.62) a month Airtel Faso MTN launched ‘'Prestige Club' for high value customers in Liberia MTN Liberia Cellcom introduced the Mobile Reader app, which will give subscribers free access to eBooks Cellcom Cellcom MTN partnered with the Wikipedia Foundation to introduce free access to Wikipedia to subscribers MTN Rwanda Rwanda to launched ‘Kiguzo Attendance Tracking System’ an app to track school absenteeism Government South MTN launched the ‘MTN Kalast’ prepaid promotion in South Sudan. It offers 7 days free on-net calls for a registration fee of SDG10 MTN MTN Sudan (USD0.17), and can be renewed after 7 days

Vodacom Strategy and Research C2 - Confidential July 2014 13 Non-commercial products and services launchedJun’14 to Jul’14

Infra- ICT Merger & Social Non-commercial e-Government Other structure Development Acquisition responsibility Multiple MTN Group launched 21-day employee volunteer initiative ‘Y'ello Care programme’ MTN countries Liquid Telecom completed the construction of the East Africa Fibre Ring which connects Kenya, Uganda, Rwanda and Tanzania; creating the first Liquid East Africa fully redundant regional fibre ring Telecom Tigo partnered with Dar Teknohama Business Incubator (DTBi) in Tanzania to support a programme aimed at promoting local talents and Tanzania Tigo employment in the country through ICT

MTN Foundation donated school items and office furniture to the Roman Catholic Primary and Junior High schools at Fumso MTN

Tigo announced an investment program to improve its network and services. Tigo plans to invest USD100,000 a day in upgrades until the end of Tigo Ghana October, with initial emphases on fibre infrastructure ITU, ITU awarded Ghana the Project Prize 2014 Award in Rural Telephony for bridging the communication gap in rural communities Ghana Airtel anounced its support for Immanuel Afrika’s (I-Afrika) biogas project, which promotes clean and cheaper energy sources Airtel

Kenya launched the Integrated Financial Management Information System (IFMIS), which will post all government tenders, bids and contracts in Government Kenya online, and combat corruption Kenya Phase 2 of the National Optic Fibre Broadband Infrastructure (NOFBI) is under way which expands Kenya’s fibre optic coverage with an additional NOFBI 1,600KM The government plans to process license applications through online and mobile platforms Government ICT Authority signed a three year Memorandum of Understanding with Huawei Technologies to enhance skill development in the ICT sector Huawei

Nigerian mobile-phone manufacturer, Tingo Mobile, will buy a majority stake in Mass Telecom Innovation Nigeria Plc (MTI) for about NGN4bn Tingo Mobile,

(USD25m) to develop rural broadband MTI

MTN Y’ello Care renovated six blocks of classrooms in Basiru Dania Primary school, as its contribution to improve education in Lagos State MTN Nigeria Data Power Technologies Limited and human resources management firm, Primex Consulting have partnered to train the youth in ICT Data Power

UNICEF launched ‘U-report’ a free SMS-based communications technology to enable accountability in governance, health, education, the UNICEF environment and other areas of community endeavour through social mobilisation

Uganda Smile Communications will provid government schools with a free router and 20 GB's of free data on the 4 G LTE platform every month Smile Smile Liberia Cellcom launches new 4G tower on Cuttington University Campus Cellcom Millicom has acquired a controlling stake in Rwanda’s main provider of bank-to-bank payment switching services RSwitch, the company holds one Tigo/ Millicom of two switching licences in the country Rwanda Tigo signed a four-year agreement with One UN Rwanda aimed at promoting youth and women employment through ICT Tigo

Vodacom Strategy and Research C2 - Confidential July 2014 14 Economic and ICT indicators for Vodacom’s operating countries

Real GDP (USD bn) Tanzania General Economic Indicators (2014 est.) Communications (est.) GDP (% real change pa) • Population Size (m)(1) 50.8 • Main Fixed-line (2013)(2) 167 200 26.0 28.1 22.4 24.0 (2) 8.2 8.0 • GDP per Capita (USD) 1 730 • Fixed-line Penetration (2013) 0.4% PPP)(1) • Mobile Subscribers (m) (Jun’14)(3) 27.89 6.9 7.1 • Mobile Penetration (Jun’14)(3) 54.87% (2) 2012 2013 2014 2015 • Internet Penetration (2013) 14%

Real GDP (USD bn) DRC GDP (% real change pa) General Economic Indicators (2014 est.) Communications (est.) 14.1 (1) • Main Fixed-line (2013)(2) 60 000 12.0 13.0 • Population Size (m) 69.4 11.1 (2) 8.2 8.5 • GDP per Capita (USD) 470 • Fixed-line Penetration (2013) 0.1% • Mobile Subscribers (m) (Jun’14)(3) 31.27 7.2 7.9 PPP)(1) • Mobile Penetration (Jun’14)(3) 45.04% • Internet Penetration (2014)(2) 3.2% 2012 2013 2014 2015

Mozambique Real GDP (USD bn) General Economic Indicators (2014 est.) Communications (est.) GDP (% real change pa) • Population Size (m)(1) 26.5 • Main Fixed-line (2014)(2) 88 900 12.9 (2) 10.5 11.2 12.0 • GDP per Capita (USD) 1 170 • Fixed-line Penetration (2014) 0.7% (1) (3) 7.4 7.6 PPP) • Mobile Subscribers (m) (Jun’14) 12.83 (3) 6.5 7.3 • Mobile Penetration (Jun’14) 48.44% • Internet Penetration (2013)(2) 7.4% 2012 2013 2014 2015

Real GDP (USD bn) Lesotho GDP (% real change pa) General Economic Indicators (2014 est.) Communications (est.) 2.2 • Population Size (m)(1) 2.1 • Main Fixed-line (2014)(2) 46 300 2.1 2.0 1.9 • GDP per Capita (USD) 2 150 • Fixed-line Penetration (2014}(2) 2.2% 5.4 5.5 PPP)(1) • Mobile Subscribers (m) (Jun’14)(3) 1.89 4.0 4.6 • Mobile Penetration (Jun’14)(3) 89.97% 2012 2013 2014 2015 • Internet Penetration (2014)(2) 6.2% (1) EIU, 2014 (2) Budde, 2014 (3) WCIS, 2014 Vodacom Strategy and Research C2 - Confidential July 2014 15 Competitors in Africa – Apr’14(1) The table displays the key Mobile Operator footprint in Africa. Orange has the biggest footprint in 18 countries, followed by Airtel

Vodacom & Lap Green Global Telecom Orange Bharti Airtel MTN Etisalat Millicom/Tigo Vodafone Network (Orascom)

Number of 18 17 16 10 8 7 4 4 operations Botswana Burkina Faso Benin Benin DRC Chad Côte d'Ivoire Algeria Cameroon Chad Botswana CAR Egypt DRC Sierra Leone Burundi

CAR Congo Cameroon Côte d'Ivoire Ghana Ghana Southern Sudan CAR

Côte d'Ivoire DRC Congo Egypt Kenya Mauritius Uganda Zimbabwe

DRC Gabon Côte d'Ivoire Gabon Lesotho Rwanda Note: Sierra Note: Changed

Egypt Ghana Ghana Niger Mozambique Senegal Leone in its name from Equatorial deployment stage Orascom Kenya Guinea Nigeria South Africa Tanzania Guinea Telecom Holding Guinea Madagascar Guinea-Bissau Sudan Tanzania to Global Telecom Note: Holding, as part Guinea-Bissau Malawi Liberia Tanzania Note: Vodafone has Millicom is of the WIND

Kenya Niger Nigeria Togo a partnership with present in South Telecom S.p.A. Africa, Kenya, and VimpelCom Madagascar Nigeria Rwanda Almadar Aljadd in Libya Nigeria, Ltd. merger

Mali Rwanda South Africa Morocco, Egypt, Mauritius Seychelles Sudan* Ivory Coast, Senegal and Morocco Sierra Leone Swaziland Ghana, via its Niger Tanzania Uganda online and e- Senegal Uganda Zambia Commerce Tunisia Zambia Note: *MTN does no services split between Sudan Uganda or South Sudan

(1) Various company websites, updated on a quarterly basis, next update will be in the July issue Vodacom Strategy and Research C2 - Confidential July 2014 16 Number of active mobile operators per country as of Apr’14(1)

The most common, and seemingly most sustainable number of operators per African country appears to be three, with outliers like Nigeria (11), Tanzania (8) and Uganda (8). There are still a number of African countries that have a monopolistic market **Bharti Airtel has announced its acquisition of Warid Uganda and Congo, but the operators will remain separate entities until further notice

Number of active mobile operators per country in Africa 1 2 3 4 5 6 8 11 Comoros Islands Angola Algeria CAR Benin Côte d'Ivoire Tanzania Nigeria Djibouti Cameroon Botswana Congo Burundi Ghana Uganda** Eritrea Cape Verde Burkina Faso Gabon Guinea Republic Somalia Ethiopia Lesotho Chad Gambia South Sudan DRC Sao Tomé & Principe Libya Egypt Kenya Swaziland Malawi Equatorial Guinea Liberia Mali Guinea-Bissau Niger Seychelles Madagascar Sierra Leone Togo Mauritania South Africa Mauritius Morocco Mozambique Namibia Rwanda Senegal Sudan Tunisia Zambia Zimbabwe (1) WCIS, Informa Telecoms, updated on a quarterly basis, next update will be in the July issue Vodacom Strategy and Research C2 - Confidential July 2014 17